One of the main implications of the basic target zone model developed by Krugman (1991) is that there is a trade-off between exchange rate volatility and interest rate differential volatility. Using an M-GARCH model we find evidence that such a trade-off existed, prior to the introduction of the...

The aim of this paper is to examine to what extent the adoption by Portugal of an exchange rate target zone regime in the context of its participation in the ERM of the EMS can be characterised by the existence of a nonlinear S-shaped relationship between the exchange rate and its fundamental....

The aim of this study is to assess to what extent the Portuguese participation in the European Monetary System (EMS) has been characterized by mean reverting behaviour, as predicted by the exchange rate target zone model developed by Krugman (1991). For this purpose, a new class of mean...

This work selectively reviews the literature on exchange rate target zones and their theoretical and empirical methodologies and examines whether they can be used to clarify to what extent this type of exchange rate regime could contribute to greater exchange rate stability. We discuss the main...

This work examines the participation of the Portuguese economy in the ERM of the EMS based on some of the main predictions of the target zone literature. The exchange rate distribution reveals that the majority of the observations lie close to the central parity, thus rejecting one of the key...

As despesas públicas em educação e saúde constituem, em muitos países, dois dos principais instrumentos através dos quais o Estado exerce as suas funções sociais, sendo todavia identificadas por vários autores como incompatíveis com um bom desempenho económico, tendo por base, entre...

From the mid-1980s to the late-1990s a considerable number of empirical studies investigated the impact of the Welfare State (WS) on economic growth with no definite conclusions on the sign, transmission mechanisms and direction of causality of the relationship. More recently, globalization,...

The Portuguese convergence and growth experience after EU membership can be divided into two periods: 1986-1998, a convergence period during which growth in the Portuguese economy accelerated and Portugal grew faster than the EU15/14 average; and a stagnation/divergence period from 1999 onwards...

Growth and real convergence in Portugal are usually analyzed after EU accession on January 1st 1986 based on real GDP per capita. There is however a lack of literature approaching the subject from an European distribution of income perspective and for a longer time period. We fill this gap by...

This paper examines the relationship between inequality and economic growth for thirty Portuguese NUTS3 regions within a multivariate panel framework over the period 1995-2007, using panel cointegration techniques to test for the existence of a relationship between inequality and real GDP per...